When Indian Prime Minister Narendra Modi wrapped up his high-profile meeting with US President Donald Trump, ABC’s South Asia correspondent wasted no time in branding the visit a failure, running the clickbait headline: “Modi leaves Washington empty-handed as Trump doubles down on tariffs.”
The narrative suggested India had gained little from the visit, as Trump’s reciprocal tariff policy cast a shadow over trade talks. But this framing ignored the bigger picture—Modi’s visit was far from a failure. It marked a significant deepening of US-India strategic ties across defence, energy, technology, and trade. As Modi himself put it, India and the US have entered a ‘mega partnership’—one that is set to transform bilateral cooperation for the long term.
In fact the meeting was a major boost for US-India ties!
Far from leaving empty-handed, Modi secured key agreements under the newly launched COMPACT initiative (Catalyzing Opportunities for Military Partnership, Accelerated Commerce & Technology). The US committed to:
- Expanding defence cooperation with a new ten-year framework for the US-India Major Defence Partnership, including new deals for Javelin anti-tank missiles, Stryker armoured fighting vehicles, and six additional P8I maritime surveillance aircraft.
- Accelerating defence technology transfers by negotiating a Reciprocal Defense Procurement (RDP) agreement to streamline sales of advanced US military systems to India.
- Deepening tech collaboration, launching the TRUST initiative (Transforming the Relationship Utilizing Strategic Technology) to boost partnerships in AI, critical minerals, data centres, and next-generation semiconductors.
- Expanding India’s role in US energy security, with a deal for India to increase imports of American oil and gas, helping balance the trade deficit.
Despite Trump’s tariff announcement, Modi ensured trade talks remained focused on long-term collaboration rather than short-term disputes. Instead of confrontation, both leaders set a new target of $500 billion in bilateral trade by 2030, signalling their commitment to strengthening economic ties.
On the other hand, Albanese struggles to find favour in Washington!
While Modi left Washington with a clear roadmap for deeper engagement, Australian Prime Minister Anthony Albanese faced a diplomatic setback.
Trump’s administration has taken an increasingly hard line on Australian aluminium exports, with his top trade adviser accusing Australia of “killing” the US aluminium market. Unlike Modi, who secured a commitment for further trade negotiations, Albanese’s appeal for an exemption to Trump’s 25% tariff on global steel and aluminium imports was swiftly dismissed.
Trump’s advisers pointed to a 103% surge in Australian aluminium exports since 2015, arguing that Canberra had disregarded past commitments to restrain shipments.
Unlike Modi, whose visit was marked by warm optics and strategic gains, Albanese was left fighting for economic concessions with little success.
The White House’s statement that Australia had “flooded the US market” signalled a growing frustration with Canberra’s trade practices, putting Albanese in a weaker negotiating position.
Clearly, the success of the Modi-Trump meeting points to India’s rising role in the Indo-Pacific!
As Washington redefines its economic and strategic partnerships, India is emerging as a critical ally in the Indo-Pacific, while Australia risks being sidelined. Modi’s ability to keep India at the centre of US strategic priorities—despite trade tensions—contrasts sharply with Albanese’s struggles to secure even a minor trade exemption.
With India’s defence, technology, and energy ties with the US expanding, the regional balance is shifting. If Australia fails to navigate Washington’s protectionist policies, it could find itself at a disadvantage, particularly as India strengthens its role as a key trade and security partner in the Indo-Pacific.
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